Wednesday, 11 April 2018

Using Buffett's guidance to navigate the volatile markets

Argues Abhishek Basumallick, a known value investor: Of course, quality comes at a cost. Growth is good only when the return on equity is greater than the cost of capital. 

Porinju Veliyath of Equity Intelligence India says the basic principles of value investing never change from Graham to Warren Buffett. “When you get stocks at prices that are significantly discounted to their values, buy them. Assessing this value is all about value investing, says he. 

Basumallick says investors should keep in mind that growth in earnings, its sustainability, quality of business and management, the ability to re-invest a large amount of capital back into the business and, most importantly, the price that you pay for a stock will eventually determine your return on that stock. So, the strategy should be to buy quality companies at 'marked down' price when available. 

Read the full article on https://economictimes.indiatimes.com/markets/stocks/news/5-warren-buffett-quotes-that-can-give-you-direction-in-confused-d-street/articleshow/63709483.cms

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